Quote:
Originally Posted by blankall
3 years fixed at 4.79% is a pretty solid decision IMO. You're only paying 1.4% more than you were, and should hopefully be in a position to get a lower rate in 3 years.
From what I've seen most banks are offering much better rates for a 5 year term than a 3 year term, as they want to get people locked in at a high rate for a longer term. You were able to negotiate a solid rate for a three year term.
As for variable vs. fixed, variable rates are currently at about 1.25-1.5% higher than fixed ones. So in your case, with a 3 year mortgage, you'd need to see some pretty quick drops (like 1.5% in the next 1.5 years or so) to not come out at about the same with fixed.
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My assumption is that the gov't will drop rates when all the COVID 5 year fixed come up for renewal in 2024/2025 to avoid a housing collapse. I think if there are drops they come in 2024/2025 at the earliest. Who knows though, I seem to be wrong more often then not!